National Insurance Co. Ltd vs Geeta Bhat & Ors

The Supreme Court held that under the Motor Vehicles Act, 1988, an owner must ensure that the driver possesses a valid driving licence, and failure to do so can absolve the insurer from liability. The Court found that the insurance company provided sufficient evidence to demonstrate that the driver's licence was fake, thus the Tribunal's decision to hold the insurer liable was erroneous. The appeal was allowed, overturning the lower court's ruling and emphasizing the owner's obligation to verify the driver's credentials.